Trust Board Febuary 2010 - Sandwell & West Birmingham Hospitals

SWBTB (2/10) 039 (a)
REPORT OF THE DIRECTOR OF FINANCE AND PERFORMANCE
MANAGEMENT TO THE TRUST BOARD
1. Introduction
Thursday 25 th February 2010
ALE PROCESS 2009/2010
The Audit Commission has advised that the approach to the ALE assessment for
2009/10 is to be more risk-based and is designed to alleviate some of the burden
at the better performing Trusts. To this end, where a Trust has scored a level 3 or
4 in any individual theme in 2008/09, auditors will not reassess this again in
2009/10, but will carry forward the score.
Trusts will be able to request a reassessment where it believes that the
performance has improved from level 3 to 4.
Auditors will automatically review any theme scoring level 1 or 2 in 2008/09.
2. Trigger Events
As part of the new approach to the ALE assessment, performance in each of the
ALE themes will initially be self assessed against the trigger points shown in the
table below. The Trust will need to provide evidence to its auditors that none of
the trigger points have occurred. This evidence will then be reviewed by the
Trust’s auditor and an assessment made of what additional work needs to be
carried out to be satisfied that performance has not deteriorated. This is unlikely
to be a KLOE by KLOE review.
Theme
Triggers
Financial reporting • a material error in the financial accounts or late submission of
the accounts for audit.
Financial management • a significant shift in performance from the forecast financial
plan; or
• the medium term financial plan has not been reviewed to take
account of the impact of having to make significant efficiency
savings in the light of pressure on public spending.